If you've ever had to file for bankruptcy, you may be wondering if there will ever be a way to get back on your feet after that. It's possible that the statement was made a few years ago, and you still don't see an end in sight. Here are some things you can do to help you get the freedom from money that you want - again - over time.
You have a good chance of getting back on your feet because there is a lot of competition out there to give loans. This means that a banker knows that if he doesn't lend you money, someone else will, and hopefully they'll make a profit. So, here's the bottom line: just because you filed for bankruptcy yesterday doesn't mean you can't get a loan today.
If you want to buy a house, another thing you shouldn't forget is that the value of the house will go up over time as equity is built up. Most of the time, a lender knows that even if you can't pay, they can still get their money back.
The Reason You Went Broke
Depending on what led to your bankruptcy and other factors, it could also be a reason for you to get the loan you want. This would be especially true if the big debt was caused by a serious illness, an accident, or something else unexpected. If this is true and you can explain it to a lender who is listening, you may be able to get a loan.
How things are right now
This is probably the most valuable thing you have that can help you get the money you need. A possible lender just wants to see that you can pay your current bills. They might look at your finances a little more closely, but the good news is that they are willing to do so. The fact that you've been working at the same place for more than a couple of years could be the one thing that will matter most to show that you can pay back the loan.
Start Small
If you want to rebuild your credit as quickly as possible but don't want to take out a big loan right away, here's how to do it. You can get a loan for something like a house, but you will still have to pay a high interest rate on the loan. Your bankruptcy will stay on your credit report for 10 years, and every lender you might want to borrow from will know about it. If you wait a little while and improve your credit score, you might be able to get a better loan with a lower interest rate.
Getting a secure credit card is an easy way to rebuild your credit. If you pay all of your bills on time and in full every month, your credit score will soon improve. If you use a second credit card wisely, it can speed up the process even more. Then add a small loan that you know you will be able to pay back quickly.
